southern africa strategic business unit 2016 …...southern africa strategic business unit 2016...

southern africa strategic business unit

2016 corporate responsibility

report

Cautionary statement relevant to forward-looking information

This corporate responsibility report contains forward-looking statements relating to the manner in which Chevron intends to conduct certain of its activities, based on management’s current plans and expectations. These statements are not promises or guarantees of future conduct or policy and are subject to a variety of uncertainties and other factors, many of which are beyond our control.

Therefore, the actual conduct of our activities, including the development, implementation or continuation of any program, policy or initiative discussed or forecast in this report may differ materially in the future. The statements of intention in this report speak only as of the date of this report. Chevron undertakes no obligation to publicly update any statements in this report. As used in this report, the term “Chevron” and such terms as “the Company,” “the corporation,” “their,” “our,” “its,” “we”and “us” may refer to one or more of Chevron’s consolidated subsidiaries or affiliates or to all of them taken as a whole. All these terms are used for convenience only and are not intended as a precise description of any of the separate entities, each of which manages its own affairs.

Front cover: First grade students get ready for class at São José do Cluny School in Viana Municipality – Luanda.

Fisherman standing by his stationed boat at Fishermen beach in Cabinda province.

Prevnar 13 is a federally registered trademark of Wyeth LLC.

table of contents 1 A message from our managing director

4 Chevron in southern Africa

6 Environmental stewardship

8 Social investment

16 Workforce health and development

20 Human rights

The SSCV Hermod as it prepares to lift the Mafumeira Sul WHP topsides from a barge.

a message from our managing director

Southern Africa Strategic Business Unit (SASBU) has a well-established legacy of excellence in southwest Africa.

In 2016, we continued to implement programs designed to improve our cost competitiveness in this low oil price environment. We are building our way back to profitability and becoming a leaner and more efficient organization in the process.

Through decades of experience, we have learned that our business is deeply linked to society’s progress. Although the international oil and gas market continues to face challenges, Chevron continues investing in the region, promoting local content and establishing partnerships that help strengthen local capacity.

The 2016 Corporate Responsibility Report is a summary of how we conduct our business in a socially and environmentally responsible manner, how we create prosperity in the communities where we operate, and how we uphold laws and support universal human rights. This report highlights our activities in Angola, the Democratic Republic of Congo and the Republic of Congo on our journey to unlock the potential for progress in the region through programs that focus on health, education and economic development.

We invite you to read our Corporate Responsibility Report, and we hope that its content faithfully conveys our vision and our values.

Thank you for your interest in SASBU’s social performance, as Chevron continues to be the energy company most admired for its people, partnership and performance.

John J. Baltz Managing Director

2016 corporate responsibility report1

Moho Nord project - located in Moho Bilondo development area in the Republic of Congo.

AngolaBlock 0

Block 0 contains 21 fields that produced a net daily average of 80,000 barrels of liquids in 2016. The Block 0 concession extends through 2030.

Mafumeira Sul

The second stage of the Mafumeira Field development includes a central processing facility, two wellhead platforms, approximately 75 miles (121 km) of subsea pipelines, 34 producing wells and 16 water injection wells.

The facility has a design capacity of 150,000 barrels of liquids and 350 million cubic feet of natural gas per day. Early production from the Mafumeira Sul Field commenced in October 2016 through a temporary production system. The main production facility was brought on line in February 2017, and gas export to Angola LNG and water injection support are scheduled to begin in the second quarter of 2017. Ramp-up to full production is expected to continue through 2018.

The total potentially recoverable oil-equivalent resources are estimated at 300 million barrels.

Block 14

In 2016, net daily production was 25,000 barrels of liquids from Benguela Belize–Lobito Tomboco, Belize North, Benguela North, Tombua, Landana and Lianzi fields. Development and production rights for the various producing fields in Block 14 expire between 2023 and 2028.

chevron in southern africaIn southern Africa, Chevron is engaged in upstream activities in Angola, the Democratic Republic of the Congo and the Republic of Congo.

In Angola, the company operates and holds a 39.2 percent interest in Block 0, a concession adjacent to the Cabinda coastline, and a 31 percent interest in a production-sharing contract (PSC) for Deepwater Block 14, located west of Block 0. During 2016, net daily production averaged 108,000 barrels of liquids and 114 million cubic feet of natural gas.

Chevron is the operator of, and holds a 31.3 percent interest in, the Lianzi Unitization Zone, located in an area shared equally by Angola and the Republic of Congo.

In the Republic of Congo, Chevron has a 31.5 percent non-operated working interest in the offshore Haute Mer permit areas (Nkossa, Nsoko and Moho-Bilondo). In addition, the company has a 20.4 percent non-operated working interest in the offshore Haute Mer B permit area. Average net daily production in 2016 was 23,000 barrels of liquids.

Chevron also has a 17.7 percent non-operated working interest in a concession off the coast of the Democratic Republic of the Congo. Net daily production in 2016 from 11 fields averaged 2,000 barrels of crude oil.

mafumeira sul$87 million

training budget used for operations training

program from 2012-2015

$700,000mafumeira sul project

contribution to community initiatives

18angolan engineers were hired

to develop project skills

92trained angolan operators

personnel to operate the facility

1,454approximate number of

construction and related jobs created for angolans at the

fabrication yards


Natural gas commercialization

Natural gas commercialization efforts are expected to monetize a total potentially recoverable resource of more than 3 trillion cubic feet of natural gas and approximately 110 million barrels of liquids through export sales of LNG and NGLs. Major commercialization projects include participation in Angola LNG Limited and the Congo River Canyon Crossing Pipeline.

Angola LNG

The company has a 36.4 percent interest in Angola LNG Limited, which operates a 5.2 million-metric-ton-per-year LNG plant located in Soyo, Angola. The plant has the capacity to process 1.1 billion cubic feet of natural gas per day, with expected average total daily sales of 670 million cubic feet of natural gas and up to 63,000 barrels of NGLs. This is the world’s fields LNG plant supplied with associated gas, where the natural gas is a byproduct of crude oil production. Feedstock for the plant originates from multiple fields and operators. In early 2016, work was completed on plant modifications and capacity and reliability enhancements. Production restarted and LNG cargoes resumed in 2016.

Total daily production in 2016 averaged 171 million cubic feet of natural gas (62 million net) and 7,000 barrels of NGLs (3,000 net).

Congo River Canyon Crossing Pipeline

Chevron holds a 38.1 percent interest in the pipeline, which is designed to transport up to 250 million cubic feet per day of natural gas from Blocks 0 and 14 to the Angola LNG plant. The 87-mile (140-km) offshore pipeline crosses under the Congo River subsea canyon. Gas flow to the Angola LNG plant commenced in September 2016.

Lianzi

Chevron is the operator and holds a 31.25 percent interest in the Lianzi Unitization Zone, located in an area shared equally by the Republic of Congo and Angola. It includes production and water-injection wells with a subsea tieback to the Benguela Belize–Lobito Tomboco platform in Angola’s Block 14. Development drilling at Lianzi was completed in January 2016.

Republic of CongoChevron has a 31.5 percent non-operated working interest in the offshore Haute Mer permit areas (Nkossa, Nsoko and Moho-Bilondo). The licenses for Nsoko, Nkossa and Moho-Bilondo expire in 2018, 2027 and 2030, respectively. In addition, the company has a 20.38 percent non-operated working interest in the offshore Haute Mer B permit area. Average net daily production in 2016 was 23,000 barrels of liquids.

Moho Nord

The Moho Nord Project, located in the Moho-Bilondo development area, includes Albian reservoirs producing to a new floating production unit (FPU) facilities hub and Miocene reservoirs producing both to the new hub and through a subsea tieback to the existing Moho-Bilondo FPU. Miocene development drilling continued in 2016. Installation of a TLP was completed in 2016, enabling the start of the Albian drilling campaign, which is expected to continue until 2020. Installation of the new FPU was also completed in 2016. Total daily production of crude oil in 2016 averaged 17,000 barrels (5,000 net) from the Moho Nord Project.

Exploration

Drilling on an exploration well in the Moho-Bilondo area was completed in January 2016, resulting in a crude oil discovery.

Democratic Republic of the CongoChevron has a 17.7 percent nonoperated working interest in a concession off the coast of Democratic Republic of the Congo. Net daily production in 2016 from 11 fields averaged 2,000 barrels of crude oil.

Angola LNG plant is the first of its kind.


environmental stewardshipOur Health, Environment and Safety group provides advice, technical support, guidance, monitoring and reporting services to our core business. To develop energy in a responsible manner, we develop sustainable, cost-effective processes that have paved the way for our objectives to be met.

We support our operations in Angola by applying processes that help us identify, assess and mitigate safety and health risks related to facility operations and modifications. Comprehensive programs on safety, occupational health and environmental performance ensure we continue to manage and reduce any potential impact of our operations.

Protecting people and the environment, which includes the preservation of biodiversity, is a Chevron core value. We deliver world-class performance by committing to strategies that include the environment in our decision-making process.

The sea turtle monitoring program along Malongo beach helps protect the endangered Lepidochelys Olivacea, Chelonia Mydas and Dermochelys Coriacea species by preventing poachers and tides from disrupting the turtles’ habitat. The

conservation program, which is based on Chevron’s Biodiversity Action Plan (BAP), began in 2002 and covers 6 kilometers of the Cabinda coastline, within the boundaries of the Malongo operations base.

The breeding season occurs between September and mid-March. During this time, nests are moved to designated, safe nesting areas at the far end of Malongo beach, sheltered from high tides, overgrown vegetation, soil erosion, oil and construction projects.

Over the last 15 years, over 165,000 hatchlings have crawled to sea from over 2,800 preserved nests in the Malongo beach conservation areas.

Cabinda Gulf Oil Company (CABGOC) wildlife protection program has contributed to the continuous improvement of our environmental

stewardship. Over the years, the program has increased local awareness and cooperation, contributing to Angola’s wildlife conservation efforts.

aiming for zero: reducing waste generationDrill cuttings are particles generated by drilling into subsurface geological formations. Zero Discharge of drill cuts containing oil was introduced in all drilling operations to comply with operational discharge regulations, Executive decree 97/14. Despite the challenges, we have factored the cuttings management into operations and are experiencing exceptional recent world-class drilling performance. Greater focus on operational discipline in fluid transfer has led to a significant reduction of spills in drilling and cuttings operations.

SASBU is committed to the continuous improvement of its processes in order to minimize pollution and waste.


achieve an incident- and-injury-free workplace

promote a healthy workforce and mitigate workplace

health risks

identify and mitigate environmental and process safety risks

operate with industry-leading asset integrity

and reliability

efficiently use natural resources

and assets

monitoring marine life

Cabinda

Angola

The Lepidochelys olivacea or olive ridley is a medium-sized sea turtle found in the warm waters of the Atlantic, Pacific and Indian Oceans. The Olive ridley gets its name from its olive colored carapace, which is heart-shaped and rounded.

The conservation program covers 6 kilometers of the Cabinda coastline, within the boundaries of

the Malongo operations base.

6 kilometersconservation

program coverage

15 years

165,000 hatchlings

+over 2,800

preserved nests

=


social investment

Children from Pequena semente.

At Chevron, our social investment projects are long-term investments on the continual and sustainable progress of the communities where we operate. Through our social investment programs SASBU sustains key partnerships with government institutions, communities, development partners and non-profit organizations in the planning, execution, monitoring and evaluation of social investment programs. We select and support strategic health, education and economic development that deliver sustainable business and socioeconomic value to the communities.

educationIn 2016, SASBU invested over $9 million in various education projects that attest to Chevron’s commitment to select and support strategic education projects that deliver sustainable business and socioeconomic value to the communities where we work. Our education projects aim to arm communities and the future workforce of the southern Africa region with the skills to thrive.

Republic of Congo (ROC)In the Republic of Congo (ROC), close to 4,900 students benefited from primary school, engineering, the Rotary Club, language and university programs.

The Nanga Primary School Project, which began in 2014 aims to address and improve access to quality education and student retention by improving learning conditions of the highly populated southeast region of Pointe-Noire. With an investment of $200,000, over the course of 2016, 1,200 students benefited from better access to education, school programs and facilities maintenance, through the integration of volunteer teachers, the support of Student’s Parents Association and the School’s Steering Committee.

To address low literacy levels in French, Chevron in the ROC joined Association Pointe-Noire Dynamique Culture – Centre Culturel Jean-Baptiste Tati Loutard (APDC-CCJBTL), Regional direction of education – to invest over $13,000 to provide a three-month summer program to 200 fourth and fifth grade students aimed at increasing their competency levels in reading, writing and comprehension. Communities recognize the annual program, which benefits ages 9 to 12, for its positive impact on the written and oral levels of students learning French.

9 millionU.S. dollars SASBU invested in various education projects

200,000U.S. dollars invested in 2016 in

the Nanaga Primary School Project in the Republic of Congo

1,920children and youth accessed

quality education opportunities

Angola

Republicof Congo

Considering Chevron’s corporate focus on improving education in science, technology, engineering and math, we sponsored technical workshops for young professionals and students in Pointe-Noire. The Society of Petroleum Engineers (SPE) hosted three round tables with industry leaders, young students and professionals.

To improve the quality of education, Chevron made an investment of $8.8 million to build Congo Catholic University in Pointe-Noire and the campus Terre D’Ecole in Brazzaville. In partnership with the Ministry of Hydrocarbons, Total Exploration & Production Congo (TEPC), Société Nationale des Pétroles du Congo (SNPC- ROC National Oil Company), Ministry of Hydrocarbons, Université Catholique du Congo Brazzaville (UCCB) association, and Terre D’Ecole (TDE) association, a joint investment of $25 million was made to strengthen the capacity of educational institutions. Both campuses are expected by 2019 and aim to benefit 1,500 students annually.

AngolaOver the last 5 years, Chevron in Angola has invested more than $21 million in education projects. More than 25 projects received investments from Chevron and fuel various partnerships to ensure that our project portfolio is aligned with Chevron Corporation’s key focus areas, local needs and current economic environment.


Students in Nanga Primary School Project.

Beneficiary profile

Bartholomew Bamanga Panda is a youngster from a humble family in Cabinda. He acquired a scholarship in 2011 after having registered and enrolled at Instituto Superior Politécnico de Lusíada de Cabinda to study computer science. During this time, he devoted himself exclusively to his studies and, at the end of 2015, successfully completed his degree program.

Bartholomew Panda is employed by a programming consultancy company integrated within the structure of the Cabinda business incubator, a project financed by Chevron in partnership with the Provincial Government of Cabinda.

Panda is now equipped with the tools to fuel a successful career, adding to a growing number of qualified Angolan professionals who are leading the socioeconomic development of Cabinda province.

Bartholomew Bamanga Panda

Cabinda scholarship program

In 2016, the Cabinda scholarship program completed seven years since its initial implementation. The project has a total investment of $1.5 million and has benefited over 200 students who are now working in sectors like banking, health, oil and gas, education, and criminal investigation.

The program awards scholarships to local students who attend Instituto Superior Politécnico Lusíada of Angola and Instituto Superior Politécnico de Cabinda (ISPCAB) based in Cabinda Province. The program affords youth from underprivileged homes the opportunity to have a full-time education and to mitigate difficulties in honoring fee payments.

We take great pride in the success and sustainability of this project that contributes to the formation of the next generation of the national workforce. The scholarship program continues to strengthen Chevron’s partnership with Block 0 partners and communities in the province of Cabinda.


community healthOur social investment projects address community health as a priority. We work with governments, communities and private and public institutions to improve access and increase knowledge to empower communities to mitigate and prevent infectious diseases.

Our projects in the southern Africa region have taken great strides and contributed positively to combat malaria, HIV/AIDS, tuberculosis and sickle cell disease.

In the Republic of Congo, an investment of over $60,000 benefited 12,430 people in various health projects.

In Angola, 176,500 beneficiaries benefited from our continual investment in reducing morbidity and mortality in our communities.

health in the Republic of CongoDuring the 2016 HIV/AIDS prevention, screening and community outreach in Diosso and Pointe-Noire, Chevron conducted awareness sessions for employees, their spouses and the community at large. In the sessions, voluntary screening was available, and close to 10,000 community members benefited from the service.

Fifty-three Chevron employees, contractors and their spouses also benefited from workshops on first aid and rescue provided by the Congolese Red Cross. During the workshops, participants received fire extinguishers and were equipped with knowledge to prevent and respond to domestic incidents.

Chevron’s partnership with the Congolese Red Cross also extended to continual efforts to educate local communities about malaria prevention. During the 2016 World Malaria Day, over 2,000 people participated in awareness sessions and received mosquito nets to prevent malaria propagation in many households in Pointe-Noire and Diosso.

Elderly people and street children are a priority of Chevron’s social investment strategy in the Republic of Congo. In 2016, 290 elderly people and children who live

on the streets benefited from $18,770 invested in programs that provide various social services ranging from food and pharmaceutical donations to quality care and education.

health in AngolaMalaria and workforce health

In alignment with World Malaria Day, April 25, SASBU’s Health and Medical department developed new materials on mosquito-borne virus education, protection and prevention. The focus in 2016 was on vector control and mitigating risk in our existing environments at work and home. Along with several new communications and visual examples, the medical staff conducted a series of site audits of our work sites to identify high-risk situations that increase the risk for mosquito-borne illness and disease.

Cabinda Integrated Community Malaria project

At the end of 2016, we established a partnership with NGO Africare to implement the Cabinda Integrated Community Malaria project. The overall goal of the project is to work closely with the community services of the Cabinda municipality and Massabi commune of the

Cacongo municipality to reduce malaria-related morbidity and mortality in the two municipalities. In the months that followed, 40 community health workers were trained and 2,155 people within 431 families were registered to benefit from house calls.

HIV/AIDS and tuberculosis

Per the World Health Organization (WHO), the risk of developing tuberculosis (TB) is estimated to be between 26 and 31 times greater in people living with HIV than among those without HIV infection. For this reason, WHO recommends 12 TB/HIV collaborative activities to achieve universal access to HIV and TB prevention, care and treatment services for all people in need. In Angola, Chevron contributed to reducing the impact of HIV/AIDS and TB in Cabinda by promoting awareness, education and capacity building within the community and health care units. In 2016, the project redefined its design and compliance processes, which will be applied in 2017.

partnering to provide medical aid to AngolaIn early April, two pallets of supplies from Medical Bridges, funded by Chevron, were flown free-of-charge on a SonAir flight and delivered, upon arrival, to two

At SASBU, we work with local governments to mitigate and prevent infectious diseases.


“We value our relationship with the Ministry of Health.

Through it, we were able to fund the

first comprehensive program of screening and medical care to sickle cell anemia

patients. Our good relationship with

the ministry and our partnership with the

Lwini Foundation help us leverage

on our social investment strategy to reduce the main causes of mortality

and morbidity and improve the health system by

strengthening human capacity.”

– Manuel Mingas Policy Government and Public Affairs

Timeline and treatment profile

1 Babies are tested within first day of life at maternity hospital

2 Sickle cell test is performed in screening laboratory

3 Families of affected infants are contacted within two months of affected infants’ birth

4 Infants are enrolled in local clinics, which provide care from locally trained physicians and nurses, and receive the following treatments:

• Prevnar 13® pneumococcal vaccination

• Penicillin twice daily every day until the age of five

• Insecticide-treated mosquito netting to prevent malaria

hospitals in Luanda that specialize in maternity and pediatrics: Hospital Pediatrico David Bernardino and Hospital Municipal de Cacuaco.

Representatives from Chevron, including John Baltz, SASBU managing director; Dr. Ana Ruth Luis, SASBU Health & Medical manager; Dr. Noe Da Rocha, SASBU Health & Medical group doctor; and Manuel Mingas, Policy, Government and Public Affairs manager, accompanied the delivery of supplies to both hospitals.

“It was very discouraging to see what doctors and families are going through at these hospitals,” said Baltz. “There are no medical supplies or medications to save these children – or equipment for the doctors to perform their duties.”

Chevron’s alliance with BIPAI and TCH began in 2011 when the organizations joined with the Angolan government to establish the Angola Sickle Cell Initiative, the country’s first comprehensive sickle cell disease program, with $4 million over four years. In 2015, the partners announced an additional $5 million in funding for the next five years. Since the program’s inception, more than 136,000 babies have been screened and 1,400 have been treated.

partnering to fight sickle cell disease in AngolaAngola has one of the world’s highest rates of sickle cell anemia. It is estimated that more than 12,000 children are born every year with the inherited blood disease. Without newborn screening and early treatment, up to 90 percent of these children will die before the age of five, usually before the diagnosis can even be made.

As Chevron entered the second year of the $5 million investment on the sickle cell project extension, focus on a strategic expansion of the project led to a partnership between Chevron, the Ministry of Health, Fundacao Lwini, Baylor International Pediatric AIDS Initiative and Texas Children’s Hospital. In 2016, the legacy of this six-year-old project continued to pioneer the model for private-public collaboration for the national expansion of the project.

Analysis and method

Dried blood spots (DBS) are collected at a child’s birth. Demographic data including the mother’s name, phone numbers, address and neighborhood health center are also collected and used to locate affected babies.

During the week of World Sickle Cell Day, observed on June 18, Angola’s Ministry of Health (MINSA) hosted a series of commemorative events. The first lady of Angola and founder of Lwini Foundation, Ana Paula dos Santos, and State Secretary of Health Constantina Furtado, hosted the main event, which took place at Agostinho Neto Memorial in Luanda.

Program results between 2011 and 2016:

y 182,061 newborn babies have been screened for sickle cell disease

y 3,929 were diagnosed with sickle cell disease

y 30,859 are in treatment

y 847 health professionals have been trained


Tostoi Neto, geologist, introduces high school students to geology on career day at Escola 1114.

employee engagement Employee education initiatives

After successful fund raising campaigns in the Chicala and Lenine buildings, Pequena Semente orphanage library was inaugurated with nearly 2,000 books in it. The library will directly benefit over 500 children.

In partnership with Luanda International School (LIS) and BP Angola, Cabinda Gulf Oil Company (CABGOC) launched a new and used book library campaign, which ran from March through May 2016.

The campaign and subsequent inauguration reaffirm CABGOC’s commitment to provide students with the tools and resources to make a positive impact on students learning.

Employee engagement

SASBU Angola’s second memorial quilt was developed through our Peer Health Educator program, a global program led by the Health and Medical department to support employee development; illness and disease education, prevention, and training; and betterment of community health and wellness. The 2016 quilt symbolizes both the struggles combating HIV/AIDS and lives lost, as well as the successes of those living full lives with the disease.

Volunteerism in SASBU

Chevron is committed to volunteerism as a way for employees, retirees, contractors, and their families and friends to provide hands-on support for their communities. We also offer an array of company-sponsored volunteer opportunities.

In 2016, the Chevron Volunteer Opportunities Program (CVOP) network painted the interior wall of the Mama Muxima orphanage with insect repellent paint.

As with all our employee volunteer initiative, this activity is aligned with CABGOC’s objective to contribute toward the reduction of some of the main causes of mortality and morbidity in Angola.

Our ongoing relationship with the Mama Muxima orphanage encompasses volunteer English classes, donations of shoes and clothing, and Christmas parties.

Toward the end of 2016, 22 SASBU SMEs took part on a career day event at Escola do 1° ciclo do ensino secundario 1114. CVOP members provided career orientation to 360 students, enhancing their current knowledge and prospects for possible career paths.

local content in AngolaChevron continues to support the development of a competitive, sustainable Angola-based supply chain for materials and services used in the oil and gas industry.

In 2016, we continue doing business with existing Angolan companies spending around $929 million with local companies. National companies are allocated

69 percent of logistics costs, thus offering greater availability of quality logistics services in Angola.

Overall, 39 percent of the total expenses of Cabinda Gulf Oil Company were attributed to national companies honoring our commitment to the development of new business opportunities with Angolan companies.

As part of CABGOC’s efforts to boost the Angolan economy, there are companies whose performances are outstanding. Cimel Oilfield services is an example. A 100% Angolan company, it presents to the national market services such as the collection of utensils lost in the well; rental of survey tools and secondary recovery of gas-assisted oil, among others.

Cimel is building a 50,000 m2 base, located in Malembo-Cabinda and expects to complete the works in 2017. The base will house a fully enclosed workshop room, manufacturing facilities and office space.

The contractual partnership with CABGOC, valued at $585 million, focuses on investing in people to ensure they acquire technical knowledge, with equipment, infrastructure and management systems to provide services independently.

CABGOC has set up training programs for contractors, focusing on critical areas such as security, corporate responsibility and helping to ensure that local companies continue to be sustainable models for Angola.

Quilt makers pose for a photo with Dr. Vanda Andrade, Business Support general manager.

Employees in Angola donated nearly 2,000 books that benefit over 500 children.


Our clinics in Luanda, Cabinda city and Malongo camp provide quality and cost-effective medical care.

workforce health and development

Chevron’s Southern Africa Strategic Business Unit has management systems in place to monitor, identify and control potential health risks for employees.

workforce healthOur fitness-for-duty (FFD) assessments, public health interface systems and health-promoting programs help keep our employees healthy and safe at work, thus mitigating the rise of work-related illnesses. In 2016, over 2,000 employees benefited from health education, periodic medical screenings and health promotion programs in SASBU.

5 weeks of wellness: walking for healthIn alignment with World Heart Day (September 29) and to further promote behavior change and support individuals taking personal action and responsibility for their health, the SASBU Wellness Team provided a limited pilot program opportunity to our Luanda employee population.

The program included devices, tools, communications, workshops, recognition, incentives, tracking and activities in a fun, supportive and encouraging team environment. In September and October, Team SASBU walked over 22,919,800 steps and over 16,613 kilometers (10,323 miles). Increasing activity by just a little supports a variety of health improvements including reduced blood pressure, increased circulation, weight management, and reduced incidents of heart disease and stroke.

know your numbers In support of our SASBU Wellness risk identification, reduction and illness/disease prevention strategy, the SASBU Wellness team led the first quarter health screening events for our workforce in Luanda, Malongo and Cabinda. In support of the Company’s FFD and illness prevention objectives, the goals of this program are to help individuals identify their risk level for noncommunicable diseases like cardiovascular diseases and provide them with support and guidance to reduce their risk. Screenings were implemented in employee workstations to reduce time away from work. This year over 580 employees were screened and we newly identified over 275 at increased risk for cardiovascular diseases.

preventing serious incidents SASBU has developed and implemented diverse field verification and validation of critical equipment and facilities to ensure that safeguards are in place to prevent or mitigate serious injuries and fatalities or damage to the environment or assets. This effort is driven by top level management with the aim to understand the complexity of the facilities we operate and the potential impact to the life of our workforce and community, the environment, and our company’s reputation.

580+employees

screened by SASBU Wellness team during Q1 health screening events in

Luanda, Malongo and Cabinda

2,000+employees

benefited from health education, periodic medical screenings and

health promotion programs

16,613+kilometers

(22,919,800 steps; 10,323 miles) walked by Team SASBU during

5 Weeks of Wellness


Class of 2016, pictured with teachers and Operations Leadership team.

workforce developmentAt Chevron, we invest in people to strengthen organizational capability and develop a talented global workforce that gets results the right way.

We develop our workforce through individual, team and leadership development using a variety of approaches and resources to empower our employees to deliver results through excellence in work execution.

In 2016 SASBU’s Leadership program, technical training and departmental boot camps among other development initiatives, reaffirmed Chevron’s position as employer of choice.

SASBU leadership forumThe SASBU Leadership Forum (SLF) is organized by the Organizational Capability team. The forum takes place during three days of interaction and knowledge sharing with the leadership team. For more than a decade, the forum has benefited over 200 employees, over the course of 13 editions.

The SLF provides the opportunity to interact with leaders and re-ignite the firm believe that Chevron is committed to support future leaders and developing its staff to the highest level of performance.

The Forum aims to provide participants with new leadership skills, communication and learning models to assist new leaders in capacity building. This edition of the forum addressed the new key SASBU behaviors, which lay the foundation of SASBU’s new culture.

delivering Chevron’s Structured Leadership Development Programs and

peoples skills workshops

managing CABGOC’s scholarship programs for employees, their children

and the community

developing the language skills of our national and

expatriate workforce

building the personal computing skills

of employees

supporting in and out of country training logistics

In Angola, our employee development strategy is focused on:


workforce training2016 began with a graduation ceremony for 36 trainees who successfully completed the Operations and Maintenance multi-skilled technical training in Malongo Camp, Cabinda.

The graduates were selected from a pool of 3,000 candidates from Cabinda and Luanda.

During the one-year program, graduates received training on mechanical, electrical and instrumentation operations. Technical English and operational discipline were also part of the curriculum.

The program included 14 national and expatriate instructors, and final test scores averaged 91%.

Over the last 60 years, CABGOC has invested more than $15.3 million on training Angolan nationals.

dirty boots program SASBU’s Supply Chain Management (SCM) department launched a Dirty Boots Program in the first quarter of 2016. The first program was attended by eight employees from various groups within SCM.

The group took a four-day tour through Malongo Field and offshore facilities to acquire basic oilfield and operations exposure.

The group of participants was selected by SCM’s Personnel Development Committee. Two more programs are planned for the current year.

over $5 millioninvested to enhance the

depth of experience of our workforce through a variety

of training

+3,800 seats in training sessions

over 50 employees benefited from

Educational Assistance Program

19 international work assignments

=

developing our workforcein 2016 we continued to sustain angolanization by investing

in long-term career development


human rightsThe Chevron Way clearly defines how we relate to all our stakeholders. At its core, we find values that nurture common understanding and uphold human rights initiatives throughout all we do. Be it in our work with local communities, employee activities or our approach to health and safety, SASBU has coherently carried out many activities that respect and promote human rights.

Waldemar David, former Block 14 chairman; John Baltz, SASBU MD; Eng. Amadeu de Azevedo, National Petroleum director; and Moises Marques, Block 0 chairman, during the Ministry of Petroleum meeting with Chevron.

With grievance mechanisms in the Cabinda province, we continue to build a positive relationship with the communities where we operate through mutual respect and open dialogue. Our social investment projects are a direct and positive consequence of this dialogue and continue to sustain key partnerships for Chevron.

Chevron’s human rights policy and its application in all our spheres of activity attest to our resolve to respect and uphold human rights. Whether dealing with employees in a non-discriminatory manner, providing a secure environment for our operations or encouraging our suppliers to adopt industry-approved safety processes and comply with the Angolan labor law, our human rights policy echoes throughout all our activities.


Atlantic croaker sold at Tier Market on Fishermen Beach in Cabinda province.

Aligned with the United Nations Guiding Principles on Business and Human Rights, Chevron’s human rights policy ensures that our operations, services and products – and that of our suppliers – contribute to a business environment of integrity, trust and partnership.

At Chevron, we encourage our suppliers to implement well-designed and effectively implemented processes to achieve world-class results in Operational Excellence. Following a process approach, we can identify, develop, implement and continually improve OE processes necessary to meet the requirements of the Operational Excellence Management System (OEMS).

The Contractor Health, Environment & Safety Management OE Process is in place to ensure that our suppliers perform to safety, health, environmental and

reliability requirements consistent with those required of employees when working on company property and when providing services for the company off company property.

At SASBU, we support human rights efforts by ensuring that our suppliers do the same. The supplier interim review form addresses training plans and compliance with Health, Environment and Safety management systems. It also assures that the supplier’s employees are well trained to perform their jobs.

In addition, the Contractor HES Management Program Audits validate the supplier’s response to the HES Evaluation Questionnaire and collect in-depth data to verify the effectiveness of the agreed upon HES processes and programs that are being implemented by the supplier’s workforce. The same protocol is used

for every audit, recognizing that not all documentation and questions are applicable for each contractor.

In the Democratic Republic of Congo, Chevron partnered with Agrisud International and Muanda Fishermen’s Association Coordination (CAPM) to support the cottage industry fishing sector in the coastal city of Muanda, Bas-Congo province. The project aimed to improve the supply of materials and equipment for fishermen in that coastal area. Six thousand fishermen indirectly benefited from training activities and fishing equipment in an attempt to modernize fishing processes, improve the sustainability of the small-scale fishing industry and address the gradual disappearance of halieutic fish stocks, which have led to a decrease in fishing yields in Muanda.

Fish vendor at Tier Market next to the headquarters of APESCAB fishermen association in Cabinda province.


the impact of stakeholder engagement in fishing communitiesChevron in Angola, in partnership with the Port Authority of the Port of Cabinda, created a mechanism of regular engagement and established a continuous discussion platform for fishing communities off the coast of Cabinda.

Chevron, the Provincial Department of Fisheries, Cabinda’s harbor master, tax police, Migration and Foreign Services, the fishermen’s Association of Cabinda (APESCAB), and the Association of Fishermen of Cacongo (AVOPESCA) met three times in 2016 to reaffirm Chevron’s commitment to the health and safety of the communities where we work.

This set of initiatives aim to reduce the impact of fishing activity near oil production structures, in accordance with Presidential Decree 317/11 of 30 December. The decree bans all industrial, semi-industrial and artisanal fishing activity in the waters of Cabinda within a thousand meters from the platforms. It enforces the use of GPS and other safety equipment and contributes to the creation of a safer environment for fishermen and oil and gas production.

To develop a sense of ownership on the part of partner institutions, a rotational model of meetings has been established to define a new location and presiding member for each event. During the course of engagement, fishermen become more versed in the complexity of oil and gas production, boosting a sense of understanding between all parties.

In 2016, participation increased six-fold to 86 participants. Also, that year a sharp decrease of violations related to the fishing activity along oil structures provided for greater security for fishermen and oil production.

Engaging for impact

y The number of participating institutions grew from 7 to 14. Those who most recently joined were: Port of Cabinda; General Tax Administration of Cabinda; Port Police Unit; Migration and Foreigners Service of Angola (SME); Border Guard Police; Criminal Investigation Services (SIC); and Angolan Navy.

y The number of participants increased by 86.5%.

y Reduction of incidents of fishing near oil production facilities, which presupposes greater security for fishermen and for our operations.

y Collaboration between fishermen and CABGOC has increased.

y Government representatives became advocates of the Cabinda Gulf Oil Company with the fishermen in the forum in which matters related to the restrictions imposed on the fishing activity near oil production facilities are discussed.

y Institutional relations between CABGOC and fishermen have become more cordial.

y Fishermen consider having more space to freely express their concerns and opinions with the institutions of the Government and CABGOC.

y CABGOC has had time to identify and select opportunities for social investments with fishermen.

y Institutional relations between the Government and fishermen improved.

y There is a greater understanding on the part of the fishermen as to the complexity of the oil installations and the existing risks to the fishing near the platforms and other petroleum structures.

y Fishermen better understand the need to use personal safety equipment at sea.

6,000indirect

beneficiaries

$189,985invested in training and

material supply to fishing community

50%percentage of increased institutional participation between 2014 and 2016

19%percentage of reduced violations related to fishing activity since the inception of

this stakeholder engagement effort


Fishermen at sea: Fishing activities near oil production structures have reduced by more than 15% since the beginning of the engagement exercises.

We welcome your comments, suggestions and feedback about this report and our programs in Angola. To contact us please visit,

www.chevroninangola.com

Thank you for your interest in SASBU’s Corporate Responsibility efforts.

© 2017 Chevron. All rights reserved. IDC 0917-103686

http://www.chevroninangola.com

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